Seller has agreed to Lease option to me a house he owns free and clear.
On a lease option what will i need him to sign?
A lease option, and a regular lease? Or just one?
Also when does title change?
How does title play out to secure my interest?
Use a separate Lease Agreement and Option Agreement. The title doesn’t get changed until they exercise their option, and fill out a memorandum of option and have it recorded. Herbster
Cool,
Herbster.
I have both forms and they are standard. Do i need state specific?
Are all three forms to be notorized (Lease agreement, Lease option agreement, memorandum) ? And memorandum recorded only?
Also, im buying it from him. With the intent to sublease, how do i protect my interest?
Thanks
State specific forms are a good idea, have a lawyer check them out. For Mi. I added a couple of paragraphs to my Lease Agreement, one about Lead Based Paint and another about the Truth in Renting Act. Your lawyer can do something similar. I also use the LP disclosure and hand out the LP pamphlet. My area Board of Realtors sells them for a $1 each.
Notorise the memorandum and record. Herbster
PS its a good idea to study your landlord/tenant laws.
Here are links to the applicable lead based paint papers:
http://www.landlord.com/leadpdfe.pdf
http://www.landlord.com/lesr_eng.pdf
The info is great im studying and working with all of it.
Thanks
Now for this deal the seller owns it free and clear. And my question is am i better off with a l/o or am i better off with this as a purchase offer? The seller needs no cash at close and is willing to be the bank. No qualifying. RMV $100,000 purchase price $71,500 exit plan A is to get a t/b. Plan B is to rent out.
As a purchase, i can do it with a grant deed? and have it, recorded. Is this correct?
And this covers Seller and Buyer’s interest?
Whether you lease option to a tenant buyer OR hold the property for rental use, you are a landlord. Question to answer is whether you want to hold the property for rental income and future appreciation, or do you want to sell the property.
If you want to sell the property, do you want all of the equity or are you willing to give some or most of it back to the seller?
If you want to hold the property, then just purchase from the seller and become a landlord. You probably won’t get better financing terms from a bank than you could get from a seller.
If you decide to lease option the property from the seller, just to sandwich lease option to your tenant buyer, you will eventually have to purchase the property from your seller when your buyer decides to exercise his option to purchase. This means you will still have to get your own financing, and exercise your option in plenty of time to satisfy any title seasoning requirements your buyer’s lender will impose on its financing.
Regardless of your plans for the property, it would appear that the equity in the property would favor an outright purchase now. If the property had no equity, then you might do a lease purchase with the seller then assign your tenant buyer’s contracts to the seller. The option consideration you collect from the tenant buyer becomes your assignment fee.
Great Stuff Guy’s
So, i want to hold for income and yes be a landlord. Now, what i need for this is a Grant Deed?
A Ca. Broker suggest a Deed of Trust and Assignment of rents. Never heard of this one.
Also, I want to set this up into a land trust. Can i do it? Can i do it at the same time as the purchase? What are your suggestions?
There’s also two other tax lots with this deal. Do i need seperate deeds, for each? Can i put the apn’s on one?
Owner will carry for 24 mo. With a balloon. No $ down 1st pmt on 1/1/09.
Thanks Again